Law: Sales Tax Act, 1990

Section: 3,5,33,34

SALES TAX ACT, 1990 (VII OF 1990)--- Sections: 3, 5, 33 & 34 - Change in rate of tax - Sales period from 13.06.2013 to 30.06.2013 - Failure to charge Tax @ 17% - Violation of provisions of Sales Tax Act, 1990 - Show Cause Notice - Passing of order by the assessing officer for the payment of sales tax along with default surcharge u/s 34 and penalty u/s 33(5) - Case remanded to the assessing officer, in appeal - Challenge to - FACTS Brief facts are that FBR reported to the adjudicating officer that certain discrepancies were observed in the sales tax return for June 2013. The registered person was confronted through a show cause notice to the effect that it made sales amounting to Rs. 1,158,200 to various customers during June 2013 (from 13.06.2013 to 30.06.2013). Statedly, in the absence of a response by the appellant, the assessing officer ordered them to pay the amount of sales tax along with a default surcharge under section 34 of the Act. The assessing officer also imposed a penalty of Rs. 10,000 under section 33(5) of the Act. Commissioner Inland Revenue (Appeals) decided the appeal and remanded the case to the assessing officer. ARGUMENTS This case came up for hearing on 18.01.2023. The learned DR reiterated the contentions contemplated in the grounds of appeal. On the other hand, the learned AR opposed the appeal. DECISION (a) Enactment is to be construed as a whole - It is a golden rule of interpretation of statute states that an enactment is to be construed as a whole and different provisions thereof should be interpreted harmoniously and in consonance with each other, in such a way that every part becomes effective and surplusage is to be avoided. (b) Enhancement of sales tax rate with retrospective effect is exproriatory and confiscatory in nature - The enhancement of the rate of sales tax with retrospective effect is exproriatory and confiscatory in nature and opposed to the fundamental rights guaranteed under the Constitution. Although on one hand the enhancement of the rate of sales tax is introduced with the retrospective effect but on the other hand it is not allowed to pass on the burden, which is nothing but an exercise against the…

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